River Freight Analysis of Sept 2017
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Reviews Opportunities and Threats to the Sector Based Upon Factors that Can and Can't Be Controlled in the Normal Course of Business
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River Freight Analysis of Sept 2017
- 1. Opportunities and Threats for Barging Freight Success stories and risks to the plan
- 2. Successes • Where are the success stories on inland waterways? • Steady if modest past growth • Projections along the same slopes • Outsized positive impact on commodity transportation
- 3. Successes • How do we encourage more traffic onto waterways? • Align barging with shipper supply chain objectives • Rates • Low risk of damaging commodity • Rates • Worker safety • Rates • Low environmental impact • Rates
- 4. Successes • How do we make waterways more attractive to shippers? • River visits by shippers • Pubic outreach via RiverWorks Discovery (.org)
- 5. Successes • How can barge lines encourage this discussion? • Evolving according to shipper incentives • Larger tows • Smaller crews • Small ship model • System critical in Europe and Asia • Could be adopted here if incentives aligned
- 6. Successes • Use of Benefit Cost Analysis (BCA) CAN create uniform comparisons of projects
- 7. Risks • Unreliability of locks narrative • Belied by risks of trucker shortage & poor road narrative
- 8. Risks • Inadequate funding narrative • Belied by actual funding trends • Belied by same for roadways • Belied by risks railroads face attracting private capital
- 9. Risks BCA: •One Stakeholder’s benefit is another’s cost •Can you switch the positions and analyze anew? •Sufficient budget to do honest BCA
- 10. Risks • Environmental narrative • Belied by intractability of that crowd for road and rail development • BCA considered immoral by segments of environmental stakeholders • Dark side of sustainability • Resource constraint • Fundamental pessimism
- 11. Risks • Freight rates don’t currently support honest profit • Barge fleet supply and demand imbalanced • Grain and coal fleet classic • Liquid overbuild looming • Self-inflicted wound • Discipline for thee but not for me
- 12. Risks • Cabotage through the Jones Act • Message to foes: Realign the much more distorted airline cabotage before maritime • Lessons: • National security • Preserving the industrial base • Reciprocal rights
- 13. Risks • Mariner licensing creates upward wage pressure • Ties back to freight rates and cabotage • Dark side of our “Great news about high-paying jobs”
- 14. Pathways Numbers and narrative • Each can illuminate or obscure • Combined effectively, solid figures and compelling stories persuade and defend. • Congress • Administration • Public
- 15. Discussion Mark J Carr Channel Design Group MarkC@ChannelDesignGroup.com DC – NOLA - StL